The global industrial margarine market is estimated to be USD 2.25 billion in 2017 and is projected to grow at a CAGR of 3.5% from 2017, to reach USD 2.66 billion by 2022.

Factors such as lower prices of margarine as well as lower fat content as compared to butter are driving the industrial margarine industry. In addition to this, the rapid growth of the bakery and confectionery industries in rapidly developing economies is projected to drive the demand for industrial margarine.

On the basis of application, the bakery industry accounted for the largest share, followed by the confectionery industry, in 2016. The growth in the bakery, confectionery, and convenience food sectors is fueling the demand for margarine as it is a cost-effective substitute for butter.

The industrial margarine market, on the basis of type, is segmented into spreadable, all purpose, and butter blend margarine. The all purpose segment accounted for the largest market share in 2016 as it can be used for baking, frying, and spreading. It is widely used for in the bakery products industry.

On the basis of source, margarine sourced from plants accounted for a larger market share in 2016, followed by margarine sourced from animals. Plants as a source are preferred by margarine manufacturers as they provide a uniform base and control the level of hydrogenation. They are also opted by the vegan and vegetarian population, further driving this segment.

On the basis of form, the hard form of margarine accounted for a larger market share in 2016, as the hard form of margarine is preferred in baking applications, especially for pastry or cake making.

North America accounted for the largest market share of the industrial margarine market in 2016. This market is driven by the health-conscious consumers due to the growing incidences of diseases such as diabetes, high-blood pressure, and constipation that has been fueling the market for margarine. The food manufacturers in the US are therefore concentrating on producing margarine products that do not contain any trans-fat.

The major restraining factor for the industrial margarine market is the stringent international regulations as regulatory approval of a food ingredient is critical. Obtaining regulatory approval for a new ingredient can be a costly and time-consuming process.

Companies such as Conagra (US), Bunge (US), and Puratos (Belgium) have acquired a leading market position through the provision of a broad product portfolio, along with a focus on diverse end-user segments. They are also focused on innovations and are geographically diversified.